Every buyer budgets for the down payment. Fewer budget properly for the cheque that comes right behind it. In Toronto, that cheque is land transfer tax, and you pay it twice: once to the Province of Ontario and once to the City. It can’t be added to your mortgage, so it comes out of your own funds on closing day.

This spring, the City raised its rates on higher-value homes, which matters a great deal in our part of town. Here’s what North Toronto buyers actually pay in 2026.

Two Taxes, One Closing Day

Ontario’s land transfer tax applies to every home purchase in the province. Toronto is the only municipality in Ontario with its own municipal land transfer tax on top, so buying in the city roughly doubles the bill. Both work in brackets, like income tax, so each rate applies only to the slice of the price inside its bracket.

For a property with one or two single-family residences, which covers most houses and condos, Ontario charges:

• 0.5% on the first $55,000
• 1.0% from $55,000 to $250,000
• 1.5% from $250,000 to $400,000
• 2.0% from $400,000 to $2,000,000
• 2.5% on everything above $2,000,000

Up to $3 million, Toronto’s municipal tax uses the same brackets and the same rates, so the City’s share matches the Province’s share dollar for dollar.

What Changed on April 1, 2026

In December 2025, Toronto City Council voted 17 to 7 to raise the municipal rates on homes priced above $3 million. The new rates apply to purchases registered on or after April 1, 2026:

• $3 million to $4 million: 4.40% (up from 3.5%)
• $4 million to $5 million: 5.45% (up from 4.5%)
• $5 million to $10 million: 6.50% (up from 5.5%)
• $10 million to $20 million: 7.55% (up from 6.5%)
• Over $20 million: 8.60% (up from 7.5%)

The provincial tax didn’t change. Only the City’s share went up, and only on the portion of the price above $3 million.

What It Looks Like on a North Toronto Home

Here are examples using real prices from TRREB’s September 2026 Market Watch for district C04 (Lawrence Park and Bedford Park), plus two higher price points. These are combined provincial and municipal amounts for a repeat buyer, before legal fees and other closing costs.

• $705,000 (the median C04 condo apartment sale): about $21,150 in total, $10,575 to Ontario and $10,575 to Toronto
• $2,335,000 (the median C04 detached sale): about $89,700, or $44,850 to each
• $2,650,889 (the average C04 detached sale): about $105,494, or $52,747 to each
• $3,500,000: about $157,450, with $73,975 to Ontario and $83,475 to Toronto. Under the old rates, the City’s share would have been $78,975, so the change adds $4,500.
• $5,000,000: about $271,450, with $111,475 to Ontario and $159,975 to Toronto. That’s $18,500 more than before April 1.

Nobody frames their land transfer tax receipt, but at these numbers you might be tempted.

First-Time Buyers Get Some Relief

If you’ve never owned a home anywhere in the world, you may qualify for rebates from both levels of government: up to $4,000 from Ontario and up to $4,475 from Toronto, for as much as $8,475 back in total. You’ll need to be at least 18, a Canadian citizen or permanent resident, and living in the home within nine months of closing.

On that $705,000 condo, the two rebates would bring the combined tax down from about $21,150 to about $12,675. It helps, although TRREB has pointed out that the City’s rebate hasn’t been updated since 2016, while prices certainly have.

A Few Things Buyers Often Miss

• It’s due on closing, in cash. Your lawyer pays it when the transfer is registered, so have the funds ready alongside your down payment.
• The higher rates only touch the top slice. If you’re shopping near $3 million, the 4.40% rate applies only to the amount above $3 million, so going slightly over the line doesn’t send your tax bill off a cliff.
• Foreign buyers pay considerably more. Buyers who aren’t Canadian citizens or permanent residents generally face Ontario’s 25% Non-Resident Speculation Tax and, since January 1, 2025, Toronto’s additional 10% Municipal Non-Resident Speculation Tax, subject to exemptions.

What It Means for Sellers

Sellers don’t pay land transfer tax, but buyers certainly factor it into what they can offer. A buyer looking at a $3.5 million home is also finding roughly $157,000 for land transfer tax before they’ve hung a single picture. Pricing that respects the buyer’s full cost of moving in tends to produce smoother deals and stronger results.

Let’s Run Your Numbers

Buying your first condo or moving up to a family home in Lawrence Park? We’ll walk you through your total closing costs before you fall in love with a property. Thinking of selling? We’ll show you how today’s buyers are doing the math, and what it means for your price.

Book a consultation or request a complimentary home valuation: visit What’s Your Home Worth, call us at 416-960-9995, or email adam.parsons@sothebysrealty.ca.

See you next Tuesday!

Adam, Sierra and Bianca
Adam Parsons Group, Sotheby’s International Realty Canada

Sources: City of Toronto (MLTT rates, rebates and By-law 132-2026); Government of Ontario (land transfer tax and first-time homebuyer refunds); CBC News, December 17, 2025; TRREB 2026 Toronto Budget Submission; TRREB Market Watch, September 2026. Tax amounts are our estimates for general information, not legal or tax advice. Your real estate lawyer will confirm the exact amount for your purchase.